ECB President Christine Lagarde intervened to block Binance’s EU MiCA license: WSJ
ECB President Christine Lagarde reportedly intervened to delay Binance's EU MiCA license approval, citing concerns over the crypto exchange's scale and its potential to deepen the use of dollar-based stablecoins, which could undermine the digital euro project. Binance had its Greek application withdrawn and is committed to operating compliantly under MiCA.
Why it matters
This intervention highlights the growing regulatory scrutiny on large crypto exchanges and central banks' efforts to control digital currency landscapes, potentially shaping the future of crypto adoption and regulation in the EU.
A senior Greek regulator told Binance that Lagarde wanted the decision delayed until the European Securities and Markets Authority (ESMA) takes over licensing decisions for crypto exchanges under a proposed EU reform that has yet to be adopted, the Journal reported.
MiCA approval is granted by the financial regulators of individual European Union (EU) countries. Approval in one country gives the recipient a license to operate across the bloc. The ECB is influencing decisions because of concerns over stablecoins and the digital euro, the Wall Street Journal said.
Lagarde was concerned that Binance’s scale as the world's largest crypto exchange and how it could deepen the use of dollar-based stablecoins in the region, undermining the central banks' digital euro project and euro-denominated alternatives.
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